January home sales best in eight years

LAS CRUCES - Local Realtors sold more homes last month than in any January during the past eight years, according to a February 13 report from the Las Cruces Association of Realtors. Five of those years are detailed in the accompanying table. The 104 sales of new and existing homes, townhomes and condominiums last month outpaced the 79 sales booked in January of 2016 by just over 24 percent. In comparison, a total of 68 new and existing homes were sold in 2012, up from just 53 sales posted in 2009.

New-home sales accounted for 5.7 percent, or six, of the January closings, which has been the typical number of sales over the past three years. While this year’s average and median new-home prices exceeded 2016’s prices by $1,949 and $11,843, respectively, they were lower than they were the first month of both 2014 and 2015. The median is where half sold for more and half sold for less.

The 98 existing homes sold exceeded last January’s 73 closings by 25 units, or 34.2 percent. January’s average sales price of $168,133 was higher than the average prices posted over the past two years, but fell significantly short of the $178,470 average reported in 2014. This year’s median price of $155,500 is the highest it’s been since 2014, when it reached $157,500.

My mentor once told me that numbers can be tortured to admit to anything. Tracking the numbers over the past few years has been a torturous exercise to say the least. For example: After a few fits and starts, the production numbers, which collapsed along with the housing market, eventually took off on a steadily upward trajectory and have been, with a couple of isolated exceptions, fairly easy to track and explain.

New and existing-home prices, however, took quite a number of years to stabilize after finding their low points. Since hitting bottom, the upward price-trend has been more of a two-steps-forward, one-step-back affair, with little rhyme or reason for the fluctuations. That all changed this past summer, when the number of new buyers entering the marketplace began to outpace the number of new listings coming online. As a result, there is now an inventory imbalance that is putting upward pressure on prices.

As of February 13, there were a total of 729 new and existing homes for sale in our area. Free-standing, single-family homes make up the bulk of the inventory with 682 units currently for sale. An additional 20 condominiums and 27 townhomes make up the remainder of the inventory. Juxtapose those numbers with the reality that we are quickly approaching our spring and summer selling seasons, and you have a recipe for higher prices.

As I pointed out in last week’s column, the number of multiple offers and over-the-asking-price offers, especially in the $300,000 and under categories, have been steadily growing. As a result, month-over-month increases in home prices are beginning to become routine. Those sellers who have been waiting for a more favorable sales climate may want to break out their sunscreen and list their homes for sale.

See you at closing.

Gary Sandler is a full-time Realtor and president of Gary Sandler Inc., Realtors in Las Cruces. He can be reached at 575-642-2292 or Gary@GarySandler.com.